After going through a divorce, marriage may well be the last thing on your mind. But second marriages happen, as do third, fourth and fifth. Entering into another commitment should be an exciting experience rather than one to be wary of. However, it is understandable to be nervous when entering into another marriage. For many who had experienced difficulties in a previous separation which centralised around children and finance.
It is a natural instinct to want to protect what you feel is rightfully yours. We can help you through our asset protection service
What is Asset Protection?
An Asset Protection agreement is a legally binding document. It sets out what each party is entitled to should the relationship breakdown.
An Asset Protection Agreement is a report in which you set out the rights in connection to:-
- any property
- pay and different resources obtained together or procured independently (e.g., through legacy)
- or that they have become tied up with a relationship.
If you were to find yourself in this position, protecting your assets for you and your children is of upmost most importance.
This agreement will preserve the expectations of the parties and prevent any surprises which may arise in the event of a divorce. The agreements can also extend into specifying and protecting future potential income and assets. For example acrued from a business, deceased spouse or through heritance. If your marriage to your new spouse should end this legal document will protect your future assets for your children.
You can even protect yourself against spending money on legal fees in the event of a marriage breaking down. It is also sometimes called a Pre – nuptial Agreement.
Do I need Asset Protection?
If the answer is YES to any of the situations below, an Asset Protection Agreement could be an advantage to you.
- We are getting married and need to ensure our individual property is protected in the event that this new relationship doesn’t work out.
- We are getting married for the second time and need to protect any potential claims on the settlement I received from my first marriage if things turn out badly.
- I am a widower considering wedding once more, I would like to protect the assets I accrued prior to meeting my new loved one, on the off chance things do not go according to plan.
- We are due to get married but we feel stressed that if the marriage does not work out, we could find ourselves in the horrible situation of ‘who gets what’.
- We are getting married for the second time; however, we both want to secure our assets to guarantee the assets we built before we met are protected for our children from our first marriages if the new relationship separates.
Getting into a new Relationship with your eyes open
It is highly likely that at some point you will want to move on with your life involving someone else. Past experience can help you avoid making the same mistakes again. But we are all human! And the marriage statistics for the UK make it important, to be sure they enter any future relationships, with their eyes open and what is important to them is properly protected.
Statistics on Marriage
4 in 10 marriages include at least one partner whose married before
2 in 10 marriages had both parties previously married
50% of first marriages end in divorce
67% of second marriages end in divorce
73% of third marriages end in divorce
If you feel that a prenuptial is relevant, a great approach to do it is up close and personal with your partner and an unbiased arbiter in the same room continuously. With the go between, you both can commonly characterize the terms of your prenuptial agreement and straightforwardly examine the worries that are driving you towards needing a prenuptial understanding. A talented arbiter will listen to both sides and can help you concentrate on what is very important and what is less important.
How do I get Asset Protection?
- If you have chosen to get married do not wait until the last minute to sort out the finances. With the agreement methodically and thoroughly thought out it is more likely to be maintained. It will also be accepted as a legal document in the court should the relationship breakdown in years to come
- Both parties must take autonomous legal guidance; this will protect you both from allegations sometime later if things happen to turn out badly.
- Full exposure of each individual’s monetary positions must be made preceding the understanding being drafted and signed.
- Think about everything that needs to be included in the agreement and those that do not. Your arbiter will give you advice on this.
- Your Arbiter will help you think about and draft on how you manage changes in circumstances that will emerge amid the marriage. For instance, in the event that you are considering having children, loss of work, legacies, annuity procurement, and the obtaining of further resources and what might happen in these occurrences.
- Consider putting in audits of the understanding at concurred periods amid the marriage, the length of the marriage can have an orientation on, regardless of whether the agreement stays enforceable and normal surveys of the procurement can help with this.
Will an Asset Protection Agreement Stand up in Court?
When you get married many assets become ‘marital assets’ and used for consideration for division between you. The fundamental reason for an Asset Protection Agreement is to determine who owns what before entering into the marriage; therefore, if the marriage were to break down there would be a clear, legal document stating what would belong to whom.
At present an Asset Protection Agreement does not convey the same weight as a Court arrangement. It won’t “naturally” be upheld by an English or Welsh court in the case of a separation and/or contradiction.
An Asset Protection Agreement is confirmation of your expectations to each other in the event the relationship breaks down. One of the mechanisms a court will consider when assessing all the circumstances of your case, is the agreement providing the preparation is correctly done.
The Court will consider:
- Did the party with the most to lose comprehend the nature of the agreement entered into?
- Did both parties disclose all their assets and include the schedule in the agreement?
- Does the agreement allow for future loss or gain of assets?
- Did both parties take independent legal advice?
- Was the agreement signed more than 28 days before the marriage?
- Would unfairness be done if the prenuptial agreement were maintained?
Divorce Negotiator is able to advise, guide and draw up this agreement with both parties. The approach is straight forward and sensitive to ensure you are happy with the arrangements from the very beginning. You will both need to provide full disclosure of your financial positions. You should carefully consider the terms of the agreement to ensure they are as clear as possible. This will ensure there is no misunderstanding should they need to refer back at any point.